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News: A third-party ISEC assessment found that KCC–MISS reduced farmers’ interest burden and improved agricultural value addition across diverse agro-regions.
About Kisan Credit Card–Modified Interest Subvention Scheme (KCC–MISS)
- Type: Kisan Credit Card–Modified Interest Subvention Scheme (KCC-MISS) is a Central Sector Scheme, launched in 2006–07.
- Nodal Ministry: It is under the Ministry of Agriculture and Farmers’ Welfare.
- Implementation: It is jointly implemented and monitored by the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD).
- It operates through Public Sector Banks, Regional Rural Banks, Cooperative Banks and Private Sector Banks.
- Aim: It aims to ensure the availability of affordable short-term credit for agriculture and allied activities through Kisan Credit Cards.
- Features:
- Concessional Credit: Farmers receive short-term KCC loans up to ₹3 lakh at 7% interest, with 1.5% interest subvention to eligible lending institutions.
- Prompt Repayment Incentive: Farmers who repay loans on time receive up to 3% incentive, reducing the effective interest rate to 4%.
- Collateral-free Loans: The scheme provides collateral-free loans up to ₹2 lakh.
- Support for Allied Activities: The interest benefit for loans taken exclusively for animal husbandry or fisheries is available up to ₹2 lakh.
- Flexible Credit Facility: The scheme provides a revolving KCC credit facility for up to five years with flexible withdrawals.
- Relief During Calamities: It provides interest relief during natural calamities, with extended support in severe disasters.
